Should You Sell or Rent Your Home?

The housing industry is saturated with homes on the market; however, job promotionsor relocations, family growth, and other issues still crop up where we need torelocate to other areas. If you are finding yourself needing to sell your homein a market where housing prices are depressed, maybe you should consider rentingout your home instead?

Online Mortgage Calculators Can Help You Decide

If you bought a three bedroom, two bathroom condo for $250,000 three years ago and are considering whether to sell or rent you may lean towards renting if your condo is worth less than you paid for it. Our online mortgage calculator shows that a $250,000 condo purchase with 20% down and an interest rate of 5.75% (a good rate for that time) results in a mortgage payment of $1,167 for principal and interest. Property taxes are approximately $234 and HOA fees will run approximately $150 giving you a total payment of $1,551.Could you rent it for what you are paying?

Other Options to Consider When Renting or SellingYour Home

There are numerous tax deductions for landlords; not only is mortgage interest a tax deduction for your rental, you get to deduct depreciation and other expenses as well. Property appreciation is another consideration. While pricing is depressed right now, historically homes do appreciate. "According to the National Association of Realtors, "on the average, the value of a home nearly doubles every 10 years."" In time the income you receive from renters will probably not just pay your mortgage costs but add wealth to your portfolio as well.

However, your family still needs housing and those costs need to be factored in as well. Can you buy another home if you don't sell your condo? Again, going to one of the free online mortgage calculators can help you crunch numbers and it is wise to consult a tax accountant as well. Many people retire well with rentals they own and you could be one of them. At least it is an option for those who are trying to sell their homes and are facing a loss if they do so. Talk to your accountant and a real estate professional to see if your best bet may be renting versus selling your home.

Source:The San Diego Union-Tribune, Sunday, April 6, 2008, Renting Instead of Selling: Can you Turn a Bigger Profit? By Greg Flaherty.

Posted By : Sheryl LandrumSheryl Landrum is a Loan Officer in San Diego, California and a freelance writer specializing in mortgage issues.